Key Stats: Lincoln Educational Services Corp.
May 23, 2019
Price: $2.87
Market Cap: $70m
Enterprise Value: $72m
3-Month Average Volume: ~10,500
FY 2019e EBITDA (EV/EBITDA): $12.5m (5.4x)
FY 2020e EBITDA (EV/EBITDA): $17.1m (4.2x)
FY 2021e EBITDA (EV/EBITDA): $25.4m (2.8x)
Valuation range based on 8x: $4.00 - $8.25 per share or +39-185% upside
Thesis
After several years of working to sustainably improve student starts (the key leading indicator), there is mounting evidence that Lincoln Educational Services Corp (LINC) will achieve this going forward. In fact, the Company has experienced positive student starts for six